Shares of Hormel Foods Corporation (NYSE: HRL) have received an average recommendation of “Hold” from analysts covering the company, according to a report by Marketbeat. The consensus indicates that out of ten brokerages, two have assigned a sell rating, five have issued a hold rating, and three have given the stock a buy rating. The average price target over the next 12 months stands at $28.86, reflecting a cautious outlook on the company’s performance.
Recent analyst evaluations have resulted in varied price targets for Hormel. Piper Sandler downgraded their target price from $26.00 to $25.00, maintaining a neutral rating in a note released on November 6, 2023. On November 21, JPMorgan Chase & Co. revised their price objective from $30.00 to $27.00, also assigning an overweight rating. In contrast, Zacks Research recently downgraded the stock from a hold to a strong sell rating as of August 29, 2023. Additionally, the Goldman Sachs Group set a target price of $27.00 while giving Hormel a buy rating on October 30. Similarly, Bank of America lowered its forecast from $35.00 to $28.00, designating a neutral stance.
As of Wednesday, shares of Hormel opened at $23.29. The company has demonstrated a 50-day moving average of $23.28 and a 200-day moving average of $26.92. Over the past year, Hormel has experienced a low of $21.03 and a high of $33.80. The firm’s financial metrics indicate a market capitalization of $12.81 billion, a price-to-earnings (P/E) ratio of 17.00, and a beta of 0.29.
Hormel released its latest earnings results on August 28, 2023, reporting earnings per share of $0.35, which fell short of the consensus estimate of $0.41 by $0.06. Despite the earnings miss, the company achieved a revenue of $3.03 billion for the quarter, surpassing analyst expectations of $2.98 billion. This represents a 4.6% increase in revenue compared to the same quarter last year. Analysts predict Hormel Foods will post $1.65 earnings per share for the current fiscal year.
In financial news, the company announced an increase in its quarterly dividend, with a payment scheduled for February 17, 2024. Shareholders of record on January 12, 2024 will receive a dividend of $0.2925 per share. This dividend reflects an annualized figure of $1.17 and a yield of 5.0%, marking an increase from the previous quarterly dividend of $0.29. Hormel Foods’ dividend payout ratio stands at 85.40%.
Hormel Foods Corporation is engaged in the development, processing, and distribution of various food products, including meats and nuts, to retail and foodservice sectors both domestically and internationally. The company operates through three segments: Retail, Foodservice, and International, providing a variety of perishable and shelf-stable products.
